The European Central Bank (ECB) is cautious about discussing rate cuts due to ongoing inflation risks. ECB Vice President and President, Isabel Schnabel, emphasized that monetary policy is working to bring down inflation. However, the ECB forecasts for inflation are higher than some economists' predictions. President Lagarde and other ECB officials have expressed concerns about inflation, with Lagarde suggesting that interest rates need to be sustained at current levels for a significant period to achieve a 2% inflation target. The ECB is also expecting a temporary rebound in inflation in the coming months, while the Euro zone's economic growth is forecasted to be modest in the next few years.
π΄ EU COMMISSION FORECASTS 2024 EURO ZONE ECONOMIC GROWTH AT 1.2% AND EXPECTS 1.6% IN 2025.
π΄ EU COMMISSION FORECASTS EURO ZONE INFLATION AT 5.6% IN 2023, DOWN FROM 8.4% IN 2022.
π΄ EU COMMISSION FORECASTS EURO ZONE INFLATION WILL FALL TO 3.2% IN 2024 AND TO 2.2% IN 2025.
π΄ EU COMMINSION: HIGH INFLATION, ECB INTEREST RATES AND WEAKER EXTERNAL DEMAND TOOK A HEAVIER TOOL ON EURO ZONE GROWTH THAN EXPECTED.
π΄ ECB'S CENTENO: THE ECB NEEDS TO REDUCE ITS BALANCE SHEET.
π΄ ECB'S CENTENO: EURO-AREA GDP NUMBERS HAVEN'T BEEN GREAT.
π΄ ECB'S CENTENO: WE'RE STILL EXPECTING A GOOD INFLATION PRINT FOR NOVEMBER.
π΄ ECB'S CENTENO: CONVERGENCE TO 2% INFLATION WILL BE SLOWER.
π΄ ECB'S CENTENO: INFLATION IS COMING DOWN FASTER.
π΄ ECB'S CENTENO: WE MUST BE PATIENT.
π΄ ECB'S VILLEROY: I'M CONFIDENT WE WILL GET INFLATION TOWARD 2% BY 2025.
ECB to hold rates through mid-2024 despite stalling economy- Reuters Poll https://t.co/8IDxR23jAd https://t.co/7bH7sUPi4e
β οΈ ECB TO HOLD RATES THROUGH MID-2024 DESPITE STALLING ECONOMY - REUTERS POLL Full Story β https://t.co/nhXdwEeoj7
π΄ ECB'S KAZAKS: I SEE RISK OF SPILLOVER INTO INFLATION.
π΄ ECB'S DE GUINDOS: EXPECT A TEMPORARY INFLATION REBOUND IN THE COMING MONTHS.
π΄ ECB'S DE GUINDOS: DOMESTIC PRICE PRESSURES REMAIN STRONG.
π΄ ECB'S DE GUINDOS: INFLATION'S DOWN, BUT WILL STAY TOO HIGH FOR TOO LONG.
π΄ ECB'S DE GUINDOS: THE ECB WILL ENSURE THAT THE RATE IS AT A LEVEL TO TAME INFLATION.
π΄ ECB'S DE GUINDOS: WE SEE THE GENERAL DIS-INFLATIONARY PROCESS CONTINUING OVER THE MEDIUM TERM.
π΄ ECB'S DE GUINDOS: WE EXPECT A TEMPORARY REBOUND IN INFLATION IN THE COMING MONTHS.
π΄ ECB'S DE GUINDOS: IT IS LIKELY THAT THE EURO AREA ECONOMY WILL REMAIN SUBDUED IN THE NEAR TERM.
Euro-area inflation will sink below the 2% target in early 2025, sooner than the ECB predicts, the latest Bloomberg survey of economists shows https://t.co/MXPxF4IF68
Euro-area inflation will sink below the 2% target in early 2025, sooner than the ECB predicts, the latest Bloomberg survey of economists shows https://t.co/KztgnIACuS
ECB President Lagarde: 4% rate key to inflation control https://t.co/JfBDBBHIf2 https://t.co/2DN8jH9HJ4
#ECBβs Lagarde: #Eurozone inflation will come down to 2% if interest rates are kept at their current levels for βlong enoughβ.βIt is not something that [means] in the next couple of quarters we will be seeing a change. βLong enoughβ has to be long enough.β https://t.co/Ny4TFwoSpL
Euro zone inflation could tick up in coming months: Lagarde https://t.co/1tJM73I5pm https://t.co/pqCyymLALi
Lagarde: there could be upticks in inflation in the months ahead...
π΄ ECB'S PRESIDENT LAGARDE: THERE WILL BE SOME UPTICKS IN INFLATION IN THE MONTHS AHEAD.
π΄ ECB'S PRESIDENT LAGARDE: WE SHOULDN'T TAKE 2.9% INFLATION RATE FOR GRANTED.
πͺπΊ ECB'S LAGARDE: SHOULDN'T TAKE 2.9% INFLATION RATE FOR GRANTED
πͺπΊ ECB'S LAGARDE: THERE WILL BE SOME UPTICKS IN INFLATION IN THE MONTHS AHEAD
π΄ ECB'S PRESIDENT LAGARDE: IF MAJOR SHOCKS COME, WILL HAVE TO REVISIT.
π΄ ECB'S PRESIDENT LAGARDE: IF KEPT LONG ENOUGH, RATES WILL TAKE US TO 2%.
π΄ ECB'S PRESIDENT LAGARDE: INTEREST RATE LEVEL, IF SUSTAINED LONG ENOUGH, WILL CONTRIBUTE TO RETURNING INFLATION TO TARGET.
Euro zone core inflation (blue) is tumbling. It's down to 4.1% y/y in Oct '23 from a peak of 5.7% in Mar '23. We forecast further declines to 2.2% by end-2024. The Euro zone was in a low inflation equilibrium pre-COVID. That's what it's going back to. ECB hikes were a mistake... https://t.co/MnKgM4mdgr
We forecast Euro zone core HICP inflation of 2.4% on an annual average basis in 2024. That's significantly below the ECB forecast of 2.9%. The big mispricing is 5y5y forward breakeven inflation for the Euro zone (blue). That's starting to fall, but still has a long way to go... https://t.co/fqqw2JQGMs
π΄ ECB'S CENTENO: MONETARY POLICY IS WORKING, WHICH IS HELPING INFLATION TO COME DOWN.
π΄ ECB'S CENTENO: WE'RE AT A PLATEAU IN TERMS OF INTEREST RATES.
ECB still sees inflation risks so rate cut talk too early - vice president - Reuters https://t.co/LjuFkrWjQe
ECB still sees inflation risks so rate cut talk too early - vice president https://t.co/Ye22cwt6vW https://t.co/3AGWq2v6JQ